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FedEx research reveals the rising importance of sustainability in Hong Kong’s e-commerce industry
The growth of e-commerce during the COVID pandemic accelerated as consumer concerns over the environment continue to grow. For a significant number of consumers, the future of the planet is very much on top of their minds. However, commercial growth is not always friendly to the environment, and last-mile delivery demands are in conflict with sustainability. Among the 11 AMEA markets, in a scale that focuses on lead time and sustainability, Hong Kong consumers are ranked second in lead time, thus placed second-last in sustainability, just ahead of Taiwan. Conversely, consumers in Vietnam, Thailand and South Korea place greater priority on sustainability over delivery speed.
In Hong Kong, long delivery lead-times stood out as the consumers’ biggest pain point (46%) with 67% of online orders typically taking over 3 days to arrive. While the majority (71%) of Hong Kong consumers believe delivery remains the top priority in their shopping experience as they have been in sustainable shopping, 62% of consumers are more likely to buy goods from companies with an ESG policy. However, two-thirds (66%) of SMEs believe that customers are more interested in the cost of delivery than participating in sustainable e-commerce, resulting in sustainability being put on the back burner altogether. only 22% of SMEs have had an ESG policy. There is an opportunity for logistics providers to take the lead in working with SMEs to deliver in a more sustainable and efficient way with the lowest cost.
“Sustainability is no longer an optional extra for SMEs interested in expanding their e-commerce businesses. Consumers increasingly see it as an essential and non-negotiable part of their decision-making process,” said Kawal Preet, president of Asia Pacific, Middle East & Africa (AMEA) at FedEx Express. “SMEs can make an immediate difference by thinking about the logistics connecting their supply chain all the way to the end-consumer. At FedEx, we’re already taking tangible steps to mitigate the impact of delivery on the planet.”